Two and a half years and almost three thousand tweets later, I want to spend some time, again, to praise Erik’s ability to “see through the fog”. In his usual “Sunday Wrap”, released today, Erik could write, amongst other things:

“But here we are, just short of 2½ years later. Those of you who focused on fundamentals and had a bit of understanding of Europe, and who bought the 5-7 year sector in Italy in mid-October 2011, now sit on an annualized return of 12.5% (in euros), compared with 1.7% (in sterling – and well below inflation) if you had gone with the 5-7-year gilts.”

Italy and so called “peripheral Europe” have surprised many, but not all. I wish to finish with Erik’s own words, again in today’s “Sunday Wrap”:

For someone like me who has spent the last 2 ½ years arguing that the Italian sovereign should not pay higher yields than the UK, seeing the 5-year BTP trade through its equivalent UK gilt this past week came with some satisfaction. Longer term, this is right.

Well-done, Erik. But also well-done to the many courageous people who’ve worked to ensure that this could happen.